Another Nuke Scandal: Theft and Bribery

Greenpeace and anti-nuclear activists displaying a 10 x 30 metre banner warning residents that the Gori nuclear power plant is 21 kilometres away and that 3.4 million people live within the recommended 30 kilometre evacuation zone in the event of a nuclear emergency, on Busan’s famous Haeundae beach.

After a blackout-and-coverup episode recently, another development is emerging that could deepen distrust in South Korea’s nuclear industry: a corruption scandal.

Prosecutors in Ulsan and Busan on Thursday announced the arrest of six nuclear industry executives and an equipment broker on corruption charges.

The prosecutors allege the officials received bribes up to 100 million won ($88,100) each in return for providing business favors to a Korean manufacturer.

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In one case, an official is alleged to have secretly handed over a sealing unit part made by French Areva, along with its specification, to a local manufacturer in return for 80 million won. The manufacturer produced a copy and sold it to four nuclear power plants.

On Thursday, Korea Hydro & Nuclear Power Co. (KHNP), a government company that oversees the operation of the country’s 21 nuclear power plants, refuted the prosecutor’s allegations.

In a statement, KHNP said the part at issue is not a “counterfeit” or illegal copy but a patented product that it certified.

Though the secret back-dealing was clearly wrong, KHNP argued that localizing nuclear technology has long been considered an “obligation” for South Korea’s nuclear industry. By producing the part locally, KHNP said it was able to lower the purchase cost of the product to 7.5 million won from 9.2 million won. That’s about $1,500.

The arrests came less than two months after officials were caught trying to cover up a blackout at the Gori-1 nuclear plant, the oldest nuclear facility in the country. A power failure, if persisted long enough, could be lead to a serious problem like a nuclear fuel meltdown. KHNP CEO Kim Jong-shin stepped down earlier this month due to the incident. Seven other officials were relieved of their duties.

Jan Vande Putte, a nuclear expert at Greenpeace International, said in a statement Friday that the latest case is “a clear indication that the Korean nuclear industry is out of control.” Greenpeace has recently stepped up its anti-nuclear lobbying in South Korea.